Supersonic & Safe Ltd: A Courier Service Business Idea

Supersonic & Safe Ltd is a courier service business that offers parcel, documents, and goods delivery services to both organizations and individual persons within and outside Australia. The business idea is to fill the market gap for a reliable and readily available courier services company. The feasibility analysis shows that the Australian courier industry already has other players but they don’t operate as efficiently as Supersonic & Safe Ltd will be operating. The SWOT analysis shows how it will be viable in the market by filling the market gaps noted in the above analysis of existing companies. The business model canvas template shows the key partners, key activities, value proposition, customer relationships, customer segments, channels, cost structure, and revenue streams. The marketing strategies will be grouped into two which are market penetration and market development. In order to achieve a competitive edge in the market, Supersonic & Safe Ltd will adopt two main strategies which are cost leadership and differentiation. The management will be governed by a board of directors which will constitute of five members.

Running Head: BUSINESS IDEA 1
Presentation of a Business Idea
By
University Affiliation
Date

BUSINESS IDEA 2
A Description of the Business Idea
As the economy of Australia keeps on growing, businesses are opening branches in
various parts of the country. The branches need to liaise with head office and engage in regular
exchange of documents and other parcels. However these business have their staff very much
committed in their duties to achieve the organization’s goals and objectives, and therefore have
little time to transit the parcels and documents. Therefore there is need to have a courier service
provider who will be reliable in terms of safety of parcels, delivery time, and cost of delivery
among others (Wang, Jie, & Abareshi, 2015).
The above need leads to the idea of Supersonic & Safe Ltd Company which will be a
courier services business that will be offering parcel, documents, and goods delivery services to
both organizations and individual persons within and outside Australia. It will be incorporated as
a private limited company in Australia through following the company registration process and
obtaining Australian company number. According to Mirvis, Googins, & Kinnicutt (2010), the
company’s mission will be “We ensure fastest and safest delivery of your parcels”, the vision
will be; “To be the leading and most trusted parcel delivery company in the world”. The core
values that will guide the company in its operations include; Honesty, Integrity, Availability,
time consciousness, Social responsibility, Accountability, and Ethical conduct among others.
The company will start with a single office which will be based in Sydney and will later
open up branches in all the states of Australia, and even globally (Kautonen & Palmroos, 2010).
However, even with the single office, the company will be offering its services all over the
country. The company will adopt technology in its main operations and business processes as

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way of penetrating the market and gaining a competitive edge. It will be operating in the
transport services sector and its main mode of transport will be road transport, in which it will be
using Vans, pick-up trucks, Lorries, and motorcycles to deliver the clients documents and parcels
to their desired destination.
Supersonic & Safe Ltd will adopt all ethical standards as set by the local agencies and
international standardization bodies such as the International Organization for Standardization
(ISO) in order to ensure that the quality of its services is indisputable (Hartman, DesJardins, &
MacDonald, 2011). The company will be compliant to all Australian laws that relate to its
operations in order to avoid legal conflicts with the government.
Feasibility Analysis
The Australian courier industry already has other players but they don’t operate as
efficiently as Supersonic & Safe Ltd will be operating. Many of them only offer delivery services
within the towns in which they are based (Wang, Jie, & Abareshi, 2014). This makes them to be
less viable to large Australian corporations or even international organizations which want their
parcels to be delivered to long distances (Kowalska, 2014). Also, many of these companies that
just operate within their local towns, have limited operating hours since they are mainly small-
scale businesses. This leaves a market gap for a reliable and readily available courier services
company.
Secondly, some Australian courier service companies which operate beyond their local
towns, have fixed transport schedules. The rigid schedules make the clients to wait to for a
period of over one week before the courier company can go back to the route in which their
parcel is to be delivered (Ducret, 2014). This is very inconveniencing to the clients who need

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urgent deliveries especially private hospitals, financial institutions, insurance firms, law firms,
and others. Such clients end up being dissatisfied with the courier company and a ready to shift
to a more reliable company that values them.
Thirdly majority of existing courier Companies in Australia suffer from security issues
and packaging challenges. This result to loss or damage of client’s parcels during transit or while
in the courier company’s warehouse. Low security reduces customer trust on the company thus
minimizing the chances of repurchase (Wang, Jie, & Abareshi, 2014). Packaging challenges are
mainly as a result of not having suitable vehicles to transit goods such as electronics and other
goods that require special handling.
The Strengths, Weaknesses, Threats, and opportunity (SWOT) analysis of
Supersonic & Safe Ltd shows how it will be viable in the market by filling the market gaps noted
in the above analysis of existing companies as follows;
Strengths: these refer to the positive internal characteristics of the organization that it can
maximize on to achieve a competitive advantage. According to Brooks, Heffner, & Henderson,
(2014), they include; having a variety of transport vehicles including special vehicles to transport
goods that require special handling. This will play a major role in ensuring safety of clients’
parcels thus promoting quality of service offered. Secondly, the company will have a website
that enables clients to book for parcel delivery services online and pay using online payment
systems (Turban, Sharda, & Delen, 2010). This will enable the company to have a wider market
penetration.
Thirdly the company will hire highly skilled personnel to execute the organization’s
operations. The fourth strength is that the company will adopt data analytical technologies to

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analyze client’s data such as purchase trends in order to promote quality decision making and
customer relationship management (Turban, Sharda, & Delen, 2010). The fifth strength that the
company will have is a flexible schedules to meet customers’ needs.
Weaknesses: the major weakness that Supersonic and Safe Ltd will have in its first year
of operation is lack of branch offices in the major Australian cities (Kowalska, 2014).
Opportunities: They include; Adoption of blockchain technology and enterprise resource
management to manage the freight and all other stakeholders, use of social media marketing to
penetrate the market and increase market share (Turban, Sharda, & Delen, 2010), enlarging the
operations of the Company to go beyond Australia through franchising and agency contracting,
and diversifying the investment to even incorporate clearing and forwarding services, among
others.
Threats: the characteristics of the external environment that may thwart the operations of
the business include (Brooks, Heffner, & Henderson, 2014); competition from existing courier
companies which have a wide market share, change in tax laws that may affect pricing,
jurisdiction that may deter the company from expanding its operations to a particular country,
among others.

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Business Model Canvas Template
Key
Partners
Online
payment
companies
Software
developing
and
support
companies.
Vehicle
assembly
companies.
Sales
Agents.
Commercia
l banks
Key Activities
 Marketing the
organization.
 Contacting the
customers.
 Picking
clients’ parcel.
 Safeguarding
clients’
parcels.
 Delivering the
parcel to the
desired
destination.
 Notifying the
client about
successful
delivery
Value
Proposition
 Timely
delivery of
parcels.
 24/7
availabilit
y.
 Safe
delivery of
client’s
parcels.
 Best
pricing.
 Flexible
and
customer
oriented
delivery
schedules.
 Quality
services.
Customer
Relationships
 Offering
Discount to
regular
customers
 Regular update
on the progress
of the delivery
process

Customer
Segments
 Local
customers;
Business
organization
s, non-profit
organization
s,
government
agencies,
and
individual
persons
 International
customers.
Key Resources
 Finances
 Delivery
vehicles.
 Drivers
 Marketers
 Managers
 Website
 Tracking
devices
 Communicatio
n channel
 Intellectual
property
protection
 Brand
Channels
 Service
provider/produce
r- customer

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Cost Structure
 Wages and salaries
 Commissions paid to Agents
 Marketing cost
 Fuel cost
 Administration cost
 Licensing and registration cost

Revenue Streams
 Parcel delivery charges
Key partners according to Osterwalder & Pigneur (2010), refers to the parties who will
work together with Supersonic $ Safe Ltd to deliver value to its clients. The online payment
system will provide a secure and reliable payment system that the clients will use to pay for the
services received. The company will have three such online payment systems which are PayPal,
Skrill, and Payoneer. The software development and Support Company will develop and
maintain the Company’s information systems such as website, ERP, and online booking system.
The vehicle assembly companies will sell vehicles to the companies and service them.
The company will partner with three companies which are Isuzu, Toyota, and Volkswagen. Sales
agent will help the company in reaching a wider market (Armstrong, Adam, Denize, & Kotler,
2014), they will be paid commission for every business that they bring to the company.
Commercial banks will secure the company’s funds, provide loans when needed, and facilitate
payments to the company’s account by customers.

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According to Muhtaroglu, Demir, Obali, & Girgin (2013), the key activities incorporates
the major activities that Supersonic & Safe Ltd will engage in. Value proposition shows the
value that the company will be delivering to its target market. It is this value that will make the
company to outsmart its competitors in the market (Osterwalder & Pigneur 2010). Customer
relationship represents how the company will be relating with its customers in order to gain
customer loyalty, attract a repurchase, and attract referrals (Zolnowski, Weiß, & Bohmann,
2014).
Customer segments refers to how the company will divide its target market, in which
case the company will have two major segments and four sub-segments in each segment
(Osterwalder & Pigneur 2010). Channels represent how the company will distribute its services
to the customers (Dudin, Kucuri, Fedorova, Dzusova, & Namitulina, 2015). Cost structure
represents the major costs that the company will incur in its operations. Revenue structure
represents the major sources of income for the company (Osterwalder & Pigneur, 2010).
Business Plan
Company Summary
Supersonic and Safe Ltd will be a courier service company that will have its
headquarters in Sydney Australia and will be offering its services globally.
Company Ownership
The company will be a private corporation owned by investors through the
purchase of shares.

BUSINESS IDEA 9
Startup Summary
Supersonic & Safe will incur the following start-up costs:
 Delivery vehicles which will be two pick-up trucks, two vans, three motorcycles and a
lorry at a total cost of $ 143 000.
 Legal fees for registration and incorporation which is estimated at $2000.
 Furniture including three desks, three chairs, a bench, and three file cabinets at a total
cost of $5000.
 Website and secure online booking systems =$5000.
 Reliable internet connection =$2000.
 Three telephone lines and messaging services =$1000.
 Annual Salaries, wages, and commissions= $90000.
 Annual operation expenses = $5000
Total start-up cost is $253000.
Services
Supersonic & Safe Ltd will be offering document, parcel, and goods delivery services.
The services will be available to the clients anytime they need it in order to cater for
emergency deliveries (Brinckmann, Grichnik, & Kapsa, 2010). The company will only be
handling goods below six tones.
Market Analysis Summary

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Supersonic & Safe Ltd target market will consist of Businesses, Non-profit organizations,
government agencies, and individual persons.
Market Segmentation
Supersonic & Safe Ltd will have two major market segments which are; Local market
and International market. The local market will be composed of deliveries within Australia.
International market will compose of deliveries outside Australia.
Marketing Strategies
The marketing strategies will be grouped into two which are:
Market penetration: the strategies for increasing the market share they include;
advertisement, word of mouth referrals, product promotion, loyalty schemes, driving out
competitors through competitive pricing, and increasing the sales force through agency
contracting (Armstrong, Adam, Denize, & Kotler, 2014).
Market development: these are the strategies aimed at selling the services in new markets,
they include; creating new marketing segments by adopting different pricing policies,
expanding to new geographical locations, and customization of services to suit the needs of
the new markets.
Strategy and Implementation Summary
In order to achieve a competitive edge in the market, Supersonic & Safe Ltd will adopt
two main strategies which are;

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Cost leadership: This will involve reducing the cost of operation without compromising
quality of the services offered (Tanwar, 2013). This will maximize on profits and therefore
encourage more re-investment of the retained profit.
Differentiation: This will involve offering services in unique way such as having flexible
delivery schedules, guaranteeing safety of parcels, delivering parcels on good time, offering
after-sale services, favorable pricing and 24 hours 7 days a week availability (Tanwar, 2013).
Management Summary
Supersonic & Safe Ltd will be governed by a board of directors which will constitute of
five members. They will be in charge of formulating organizational goals, objectives, and
strategies to be followed (Goetsch & Davis, 2014). The company will then have the following
employees to run the daily operations; The Chief executive officer who will be the strategy
implementer and in charge of all the other staff members (Goetsch & Davis, 2014), the
marketing manager who will be in charge of all matters related to marketing and product
development, the Human resource manager who will be in charge of human resource
recruitment, training, and development, the operations manager who will be in charge of the
daily operations, five drivers, three motorcycle riders, sales agents, and seven administration
assistants.

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Financial Plan
Startup Financing:
The initial cost of starting the business which is $253 000 will be obtained from investors
who will invest in the company (Robb & Morelix, 2016). The investors will then get return on
their investment in form of dividends. After the first year of operation, the company will have
generated sufficient profit to cater for its recurrent expenditures/operational costs.
Projected Sales
Supersonic &Safe Ltd is expected to make a total annual revenue of $239 000 which will
surpass the operating cost with $144 000. The company will, therefore, have paid off the initial
investment cost within a period of two years after which the company will start re-investing
profits. After 10 years of operation, the company is expected to make $120 000 monthly.

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